An intriguing article in Automotive News (subscription required) today, suggests that Wall Street adores Tesla, which is obvious given the company’s $150 billion market capitalization (five times higher than General Motors). The article also suggests Tesla’s EV and AV investments are what drives the price. I understand! Tesla has significant advantages as I’ve outlined in a recent Medium article. But what about General Motors? There’s a case to be made for GM as well. It’s not a sexy company for sure. But looking closely at both their investments in EVs and AVs, along with today’s leadership in profitable trucks, there’s a business case for a higher valuation of General Motors.
Infatuation with Tesla. Why Not GM?
